BOOK INDUSTRY

Book Industry - Supply Chain Management

Book Industry - Supply Chain Management

Book Warehouse

Warehousing for books management is done using first in-first out structuring. This is to ensure that books published earlier move first in the market. Quality of books is judged by its paper quality that turns yellow over a period of time. Therefore, movement of books from warehouse is done using FIFO warehouse management mechanism. Warehouse has a strategic location in books demand management; they are mainly created at places where accessibility to market is near and can be done in quick availability of time (Manzini, 2012). This helps in managing the difference between publishing factory and warehouse location that are built in for proximity access to customer markets.

Diagram presented above shows the book warehousing process. It shows that books after publishing move to warehouse. After scanning the books, for record management information, books move to storage decks. When an order is received from customer, books move from in-line picking to delivery decks for final shipping to customers. Mainly, customers of book publishing firms are wholesale dealers that buy the books in bulk quantity. Therefore, warehouse plays an effective role in managing the sudden surge nit eh demand of books by the customers.

Book Demand Management

As a result of slow revenue growth and a shift in technology, the Book Publishing industry is considered to be in decline and is expected to remain in this stage of its life cycle over the five years to 2017. Revenue for book publishers is suffering as a result of consumer substitution to other resources and reading materials that are becoming readily available online. Therefore, publishers must adjust pricing and develop products, including e-books. Despite publishers' best efforts to compete, the industry is anticipated to contract as a share of the economy. While industry value added is forecast to increase at an average annual rate of 1.4% over the 10 years to 2017, GDP is projected to increase at a rate of 1.9% per year on average (IBIS World, 2012a).

During the five years to 2012, enrolment rates for adults have risen as people returned to school following layoffs or because they could not find suitable employment. Likewise, the current emphasis on higher education will likely increase competition in the job market. This trend will further contribute to rising enrolment in post-secondary education (IBIS World, 2012b). These demographic trends will likely boost textbook sales in the next five years, especially because students are more likely to buy and read books in their spare time. As a result, it forecasts an increase in trade book and paperback book sales over the period as the market for books expands and consumer sentiment improves with the strengthening economy.

Therefore, in order to manage the sudden exceeding demand in the books requirement, book publishing house are pursuing postponement strategy. For example, Pearson is an international media conglomerate involved in publishing, education and business information. The company's main business operations are in the United Kingdom and United States; however, it ...